Carrying out the valuation of a business that’s in restructuring can be a delicate matter. It can be hotly contested by creditors and shareholders concerned about their investments. The detrimental economic impacts of the global pandemic have further increased the complexity of valuation issues as companies are still finding their way through the consequences of the pandemic.
The valuation process can be even more challenging when the business is in distress, as is often the case. There are likely to be big question marks around whether the attempted turnaround will be successful. In this instance, some adjustments may need to be made to how the value is assessed. What’s the position of the borrower? Why is the business in distress? How does the market rate the chances of its turnaround?
A robust, commercial, sector aligned assessment of the business and its key drivers is the key input to any valuation in such complex scenarios. We develop a strong understanding of the business itself and its positioning in the market, and triangulate these insights with our in-depth industry and M&A expertise, arriving at the valuation which is independent, supported by commercial judgement and sector insights and can stand scrutiny by courts, companies and creditors combined. All that means you can trust our judgement when valuing your business.
